Motorcycle Insurance – Do you know your motorcycle’s index value?
Posted July 21, 2014
Are you considering purchasing a new motorcycle? Doing a little research before you buy can save you hundreds in motorcycle insurance per year. By choosing the right bike for you fro a total annual cost to operate perspective will allow you broaden your policy to include items such as uninsured motorist coverage and motorcycle insurance repair coverage.
Each carrier indexes every motorcycle, typically in three areas – collision damage, damage and theft as well as overall liability rating. So taking all available statistics about owners, accidents, make, model & year and motorcycle features, motorcycle insurance carriers calculate what they believe the odds are that covering a bike will result in a claim.
As an example check out this link to StateFarm’s motorcycle insurance education center: (http://learningcenter.statefarm.com/auto/vehicle-rating.html)
Select the make of your intended motorcycle purchase and you will see an example of indexing at work. We looked at Kawasaki as an example and found some interesting differences. For instance if we bought a ZX1000H vs. ZX1000F our insurance rates would be substantially higher. The “F” version of the bike gets the highest “E” rating in 2 out of three categories vs. the “H” version of the motorcycle which gets the much lower premium index rating of “B’ in two of the three categories including the overall liability index.
Most of the larger carriers will publish these reference tables for potential motorcycle buyers to review in advance of purchasing the bike. Keep in mind that every carrier will use their own indexing system in their own way to build up to the premium. So, it may be most helpfull to determine 3-4 possible motorcycle choices and then call the motorcycle insurance carrier to get actual figures.